Coverage

Types of Environmental Coverage Offered:

Bodily Injury and Property Damage

This coverage provides compensation for bodily injury and property damage due to a pollution condition, such as a release of hazardous or toxic materials. Covers injuries to others that occur on-site and off-site.

Personal injury damages include pain and suffering, such as mental anguish, and medical costs sustained to treat such illness.

Property damage includes costs to replace or repair another's property, including compensation for the loss of use of the property.

Contract Damages

Provides compensation where pollution impairs the insured's ability to perform under a contract.

Covers situations where pollution requires the insured to cease operations while the pollution problem is addressed and contracts with customers may be broken.

Covers situations where the insured warranties to a lessee of property owned by the insured that the property is free from pollution, but pollution exists and causes a tenant to sustain damages.  The coverages pay for compensatory damages for the which the insured is liable for such a breach of contract.

Environmental Clean-Up Costs

Policy pays for the costs the insured must incur to address its pollution problems and comply with government standards established to protect human health and environment.

Covered costs include site investigations costs and the removal, treatment or disposal of wastes.

Legal Defense Expense

Coverage pays for the insured's legal costs incurred to defend or settle a liability dispute for pollution.

Coverage pays for legal fees to defend against lawsuits brought by federal or state regulators and private third parties.

Business Interruption

Coverage pays for internal costs that the insured suffers as a result of the pollution.

Internal costs include loss of income, continued payment of salaries and other routine business expenses, and expenses for temporary relocation of the business during the period of restoration.

Remediation Cost Overruns

Also called cleanup cost cap or stop loss insurance.

Policy pays for clean-up costs that run substantially over budget, including remediation costs.

Policies require the insured to accept the risk of the project going over budget by a certain percentage or the estimated project cost. The insurer pays only is the project cost exceeds the estimated cost, plus the agreed upon buffer.